NCMA - National Contract Management Association Subcontract Management Questions and Answers

Question 1

A subcontractor on a fixed-price government contract is dissatisfied with a payment delay from the prime contractor.
The subcontractor contacts the government's Contracting Officer directly to demand payment for services rendered.
What is the Contracting Officer's most appropriate response based on the principle of privity of contract?

Accepted Answer

Direct the subcontractor to resolve the issue directly with the prime contractor.

Answer

Pay the subcontractor directly and deduct the amount from the prime's next invoice.

Answer

Mediate the dispute between the prime contractor and the subcontractor.

Answer

Initiate a termination for default against the prime contractor for failure to pay its subcontractor.

Question 2

What is the primary objective of a Contractor Purchasing System Review (CPSR) conducted by the government?

Accepted Answer

To evaluate the efficiency, effectiveness, and compliance of a prime contractor's purchasing system with government policy.

Answer

To select the best subcontractors for a specific government project on behalf of the prime.

Answer

To approve every individual subcontract purchase order before it is issued by the prime contractor.

Answer

To negotiate lower prices with suppliers for all major subcontracts.

Question 3

A prime contractor is preparing a subcontract for commercial services under a non-commercial government contract. According to FAR 52.244-6, which of the following clauses is generally required to be flowed down to the subcontractor?

Accepted Answer

Equal Opportunity (FAR 52.222-26)

Answer

Cost Accounting Standards (FAR 52.230-2)

Answer

Changes - Fixed-Price (FAR 52.243-1)

Answer

Government Property (FAR 52.245-1)

Question 4

A prime contractor holds a cost-reimbursement contract that includes the clause FAR 52.244-2, Subcontracts. The contractor does not have a government-approved purchasing system. What action must the prime contractor take before awarding a new time-and-materials subcontract?

Accepted Answer

Obtain the Contracting Officer's written consent.

Answer

Proceed with the award, as consent is only needed for cost-reimbursement subcontracts.

Answer

Notify the Contracting Officer within 15 days after making the award.

Answer

Request a new purchasing system review before awarding the subcontract.

Question 5

In the context of subcontract management, what is the primary purpose of a "Make-or-Buy" program plan submitted to the government?

Accepted Answer

To allow government review and agreement on the contractor's plan to produce items in-house versus subcontracting them.

Answer

To provide a list of pre-approved subcontractors for the contract.

Answer

To satisfy small business subcontracting goals before proposal submission.

Answer

To document the contractor's final, unchangeable sourcing decisions.

Question 6

A prime contractor delivers a final product to the government. During acceptance, a critical component provided by a subcontractor is found to be non-conforming to the prime contract's specifications. Who is ultimately responsible to the government for correcting the defective component?

Accepted Answer

The prime contractor, for all aspects of contract performance.

Answer

The subcontractor, because they manufactured the faulty component.

Answer

The government, if it consented to the award of that specific subcontract.

Answer

Both the prime contractor and subcontractor, who are jointly and severally liable.